Graco Sells Part Of 2012 Acquisition After Fed Orders
Following final orders from the Federal Trade Commission, Graco Inc., said Wednesday that it will spin-off the liquid finishing business assets it acquired in a 2012 transaction, for $590 million. The buyer is Carlisle Companies Inc., of Charlotte, North Carolina.
The sale comes more than two years after Minneapolis-based Graco, a manufacturer of liquid handling and measuring equipment, acquired Illinois Tool Works for $650 million. The FTC warned against the purchase, saying the acquisition of ITW’s liquid finishing business “would hurt competition and lead to higher prices and reduced innovation.” The division was held separately while awaiting the FTC order.
With 2013 annual sales of $279 million, Graco valued the division at $422 million. The sale will net the company $168 million in pre-tax dollars.
Graco will be allowed to keep ITW’s Gema powder finishing business.
Graco has executed a string of acquisitions in the past year, including its recent purchase of UK-based Alco Valves Group for $90.8 million.